Retailer brand image is positively associated with CBBE.
a. Incongruity
A review of the literature unveils the significant challenge to conceptualize incongruity and to incorporate it into the proposed model in a theoretically sound way. Across different research domains such as advertising, branding and celebrity endorsement the concept is labeled,
61
defined and operationalized differently. Furthermore, authors refer to various theories to explicate incongruity. The following section provides an overview over the key theoretical approaches dealing with (in)congruity.
i. Definitions and Theoretical Foundations
A review of the term incongruity turns out to be quite intricate because the various literature streams lack a lucid, coherent terminology. Authors relate to similar or identical (in)congruity concepts by employing different expressions such as fit, perceived fit, similarity, consistency / consistency effect, coherence, congruence, typicality, matching and match-up (Fleck and Quester 2007).
The congruity literature is mostly based on the psychological concept of congruity or the principle of congruity. Other theories combine psychological and sociologicalelements or are mainly sociological in nature. Different theories exist to explain the mechanism of (in)congruity perceptions.
(A) Balance Theory
One of the earliest theories on incongruity, the so-called balance theory, was founded in the 1940s. Balance theory evolved analyzing interpersonal communication. According to Heider (1946; 1958), “a person feels uncomfortable if he disagrees on a topic with someone he likes.” The resulting feeling of discomfort facilitates an adjustment process entailing change of opinions to reach a balance state. The theory was tested and could be supported in various social settings.
62 (B) Cognitive Dissonance Theory
Similar to balance theory, dissonance theory posits that individuals face a state of distress in case of discrepant cognitions (Carlsmith and Aronson 1963). The dissonance may be based upon a gap between experience and expectation, and individuals will then seek to reconcile the conflict to achieve consonance (Cooper 2007).
Originally devised by Festinger (1957), this theory is based upon the notion that individuals store pieces of information as cognitive elements, i.e. perception and knowledge about the environment and oneself. Cognitions that are related and implied are consonant (e.g. A- I am eating this steak and B – I enjoy it; example adapted from Wicklund and Brehm 1976, p. 2). Contradictory cognitions lead to dissonant relationships (e.g., I bought this food and it is not tasty). Not all cognitions held by an individual are linked. They are neither consonant nor dissonant – they are irrelevant (Wicklund and Brehm 1976).
Even though often cited as classic theories of congruity, the previous three theories have a strong sociological focus and appear to have limited application for the interplay between product and retailer image. But it should be mentioned that dissonance theory is often employed in the brand extension literature (Kim 2003) (it will discussed later further why this theory does not appear to ideal for this research).
(C) Congruity Theory
Congruity theory extends both balance and dissonance theories and explains the existence of internal discomfort in case of discrepant cognitions. This theory provided an important basis for advertising research because it is not simply based upon the dichotomy of balanced and imbalanced states. Rather, it suggests various stages of disliking within a state of imbalance.
63
Interestingly, certain stages of imbalance may actually serve well to persuade individuals of promotional messages (Osgood and Tannenbaum 1955). The phenomenon of incongruity as a positive aspect will be briefly discussed later. For this context, it is to be noted that this theory has been applied to dissect incongruity effects between store and product image: provided a consumer evaluates a source (e.g. store) and an object (e.g. product) equally, a positive association is established creating consistency (Jacoby and Mazursky 1984).
(D) Associative Network Models
Associative network models were predominantly developed in the 1970s and 1980s (Wyer and Albarracin 2005). Although different models exist, they are characterized by two key elements: in the first place, they postulate assumptions regarding the manner knowledge is structured and stored in memory. And in the second place, they theorize on the processes guiding the usage, evaluation and interpretation of knowledge.
Consumers discern information through their senses. The information is transformed and then stored in the neurophysical system. Information storage results in the forming of associative networks (Sorrentino and Higgins 1990). These models are called “associative” because any stored item of knowledge is presumed toform associations with other items (notion of
“associationism”). The network of links (the associative relations) and knowledge items called nodes represents semantic relationships. The relations between the nodes are activated along the associations.
Knowledge units stored in memory are associated with meaning. This meaningful knowledge interrelates in contexts. In other words, the term “semantic” implies the meaning
64
ascribed to the units of the network (e.g. link between “Coke” and “sparkling”). The element conferring meaning to the knowledge unit is associations, e.g. brand associations.
New cognitive structures are established by adding new knowledge items and the development of associations between them. Recurring activation of associations strengthens the links and facilitates retrieval of knowledge (Strube and Wender 1993).
The processes underlying the formation of the knowledge network support the alignment of congruous associations. An individual’s memory is a network that will group images and information that are perceived to be similar in nature in order to make cognitive processing more readily available (Souza, Owen and Lings 2005).
Within the associative network model, one has to distinguish between two effects in case of incongruity: on the one hand, incongruous elements of communication lead to “confusion” and potential negative responses. On the other hand, incongruity tends to enhance recall (Sjoedin and Toern 2006).
(E) Schema Theory
According to schema theory, consumers are guided by schemas when making
assessments and judgments about products. Consumers develop specific schemas to evaluate pieces of marketing communication (Souza, Owen and Lings 2005). Schemata are psychological constructs or data clusters that are a form of mental representation for complex knowledge (Morschett 2002; Fiske 1982). Schemata serve toorganize existing knowledge as well as newly acquired knowledge. A schema is a cognitive structure that represents a domain that includes a person, event, or place (Rifon et al. 2004; Taylor and Crocker 1981).
65
Incoming new information is brought in alignment with existing schemata. A dynamic process of adjustment unfolds to reconcile discrepancies between the new information and the present schemata. In case new information can be reconciled with the existing schema, the schema stays the same (assimilation of new information), otherwise accommodation leads to a modified schema.
Hence, schema theory is a learning theory (Lynch and Schuler 1994; Homer and Kahle 1986). Congruity between new information and schema facilitates the learning process and the ability to retrieve knowledge (Keller 1993; Myers-Levy and Tybout 1989).
ii. The Consequences of Incongruity
A review of the literature indicates that congruity is to be preferred to incongruity in most cases. The subsequent section exemplifies the positive consequences of congruity.
(A) Celebrity Endorsement Literature
This literature stream analyzes the match between a celebrity (spokesperson etc) and the endorsed event (or product). The studies in this domain specifically test the congruity between the characteristics of the celebrity and the attributes of the event or product. Research findings positive consumer perceptions when the product image and spokesperson image are congruous (Lynch and Schuler 1994).
(B) Event Sponsorship Literature
Successful sponsorship e.g. of a sports event is predicated upon the congruence between the sponsor image (e.g. bank – ‘performance-oriented’) and the image of the event (e.g.football)
66
(Kahle and Riley 2004). An event is similar, i.e. congruent, to a sponsored product if it either could be used (direct, functional similarity; e.g. NIKE and football) or if the sponsor’s image matches the event image (indirect, image similarity) (Gwinner and Eaton 1999; Gwinner 1997).
(C) Brand Extension Literature
Brand extensions are bound by perceptions of congruity. A brand extension that does not appear typical or is unfitting with the profile of the mother brand leads to negative consumer evaluations (Ladwein 1994; Park, Milberg and Lawson 1991). Inconsistency between the attributes of the original brand and extended brand’s attributes causes dissonance and unfavorable consumer attitudes (Kim 2003). A key criterion for brand extension success is similarity (Boush and Loken 1991).
(D) Integrated Marketing Communication
The brand management literature points to the general necessity of a consistent and cohesive brand image facilitated by an adequate congruent brand communication (Sjoedin and Toern 2006). Congruence is thus part of integrated marketing communication. The AMA (2010) defines integrated marketing communication as “a planning process designed to assure that all brand contacts received by a customer or prospect for a product, service, or organization are relevant to that person and consistent over time.” Integrated marketing communication has three facets, concept, synergy and process. The process requires a system of coordinated efforts to plan and execute messages. The concept of integrated marketing communication is the understanding that messages are sent to stakeholders (including customers) in case of a contact and interaction (e.g., consumer visiting a store). Synergy expresses that consistent and carefully coordinated
67
messages have a stronger effect upon stakeholders. Complementary messages create a consistent and clear image for stakeholders (Kimmel 2006; Duncan and Moriarty 1997).
(E) Congruence of Brand Associations in CBBE and Retailer Brand Equity
Even though Keller (1993) does not expressly mention the term schema, he cites the literature on schema theory to elaborate on congruence of brand associations. Congruence affects strength and favorability of brand associations. Keller (1993) emphasizes the necessity for
congruence to communicate a cohesive brand image that otherwise risks to be diffused. The marketing communication of a company is the initial driver of the Brand Value Chain. Consistency is a multiplier indicating quality in the Brand Value Chain (Keller 2008). The term value chain alludes to the value adding functions of a brand for consumers. The
functions are based on the brand associations reducing consumer search costs and perceived risk (Aaker and Keller 1990).
Consistency is not only a matter of the CBBE but also Retailer Brand Equity. Inman, Shankar and Ferraro (2004) adapt Keller’s CBBE to investigate channel associations. They show that consumer’s associate signature products with specific channel types. The more an offered product category deviates from the signature the more the strength of associations will be undermined.
iii. Construct Definition of Congruity
Based on the aforementioned theories congruity can be described as concord of between pieces of information. This research seeks to implement a holistic measure for congruity by comparing different types of retailer image and product brand image.
68
Based upon who developed such a holistic congruity measure in the event-sponsorship context, congruity is defined as the consumer perception that retailer brand and product brand have a similar image Gwinner (1997). According to Speed and Thompson (2000, p. 229, 230) congruity is the abstract notion of fit conceptualized in one construct. Congruity is the degree of similarity expressing a logical connection, and making sense. It is not linked to a particular dimension of fit (Speed and Thompson 2000, p. 229, 230). In order to account for the location of incongruity within the CBBE model, the following construct definition is presented: congruity” is the degree of perceived concord between RBI and PBI within the CBBE framework.
iv. Retailer Brand Type, Product Brand Type and Incongruity Effects
This section provides the essential building blocks and rationale for the hypotheses.
(A) Retailer Brand Type: Low Versus High Image Retailers
In retailing, one can differentiate between low and high image stores. Within the US market for pet food one can distinguish between the following key retail outlets: discount mass merchandisers (Walmart, Kmart, and Target), general merchandise (variety) discounters (Dollar General), traditional supermarkets (e.g. Kroger) and national specialty stores (e.g. Petsmart, Petco) (Veterinary Practice News (2011); Government of Canada 2005). This market structure reflects the continuum between “every day low price” (EDLP) and “high-low promotional pricing” (HILO). Following the basic low-high store image dichotomy, one can observe
discounters on the one end and national specialty stores on the other end of the continuum (Bell and Lattin 1998; Ailawadi and Keller 2004).
69
For this research, one has to keep in mind that attributes of retail outlets impact retailer image, consumer store choice and purchase decisions (Hansen and Deutscher 1978; Leszczyc and Timmermans 2001; Paulins and Geistfeld 2003).
(B) Product Brand Type: Low Versus High Image Brands
A key argument for buying private brands is their lower price. Price sensitive shoppers are inclined to compromise the name brand for a lower price tag, possibly accepting a quality standard that could be, but is not necessarily, on the same level as the national brand (Garretson, Fisher and Burton 2002).
In spite of the efforts made by some retailers to position private labels as being equivalent in quality compared to their national brand counterparts, a significant amount of low-quality private brands clearly still exist and undermine the overall image of store brands compared to national brands (Kumar and Steenkamp 2007). Dog food store brands are generally considered inferior to national brands due to the amount of fillers and by-products in them
(Consumersearch.com 2010a, Dahlgaard 2005).
(C) Interplay between Product and Retailer Brand Images (1) Overview
The image of a product brand sold by a retailer and the image of the selling retailer influence one another. This mutual influence is predicated upon the following factors: retailer image is not a static factor but is subject to changes in consumer perception (Myers 1960). Furthermore, retailer image influences store patronage (Hansen and Deutscher 1978). The fact that product brand image and retailer brand image influence each other can be illustrated by the
70
following introductory example: in case the consumer is challenged in the ability toassess the quality of a new product brand, the image of the corporation – here the retailer – conveys a quality cue regarding the product (Brown and Dacin 1997).
(2) Key Studies
The positive notion of congruity is supported by research dissecting the interplay between retailer image and product image. The following studies serve as key examples:
In an empirical study referring to clothes Pettijohn, Mellott and Pettijohn (1992) unveiled that in case of a very high product brand image confronted with a weaker store image, the retailer image was not as negatively impacted as hypothesized. But a very high store image connected to a weaker product brand image led to low brand image perceptions. In other words, a low image retailer might be able to improve the store image by offering high image products, whereas a high image store will be harmed when offering low image product brands.
Grewal et al (1998) state the fictitious example of K-mart selling Tiffany jewelry. This is not a far–fetched example considering that K-mart has made efforts to boost its image by
offering Martha Stewart products. (Interestingly, the reviews of many customers of Kmart found on the internet indicate some disappointment with these products and point to the better quality of the Martha Steward brand at Macy’s – one brand “Martha Stewart” communicates different quality perceptions associated with two stores with a disparate retailer image). Referring to incongruity theory Grewal et al. (1998) suggest that the image of the product brand – Tiffany’s – would decrease, while the store image of K-mart would increase. This evaluation matches the findings of Jacoby and Mazursky (1986). In their seminal piece on linking brand and retailer images diagnose this mechanism: “the party with the more favorable image will be adversely
71
affected, while the less favorable image may have that image enhanced.” (p. 105). Based on this consideration one can distinguish between the following four constellations:
First of all, a low image retailer selling low image private brands leads to perceived congruity (situation 1). In the second constellation a high image retailer selling high image national brands – leads to perceived congruity (situation 2). Thirdly, a situation in which a low image retailer sells high image product brands – national brands – causes high perceived incongruity (situation 3). Finally, when a high image retailer sells low image product brands – private brands – prompts at least moderate perceived incongruity. Moderate incongruity is anticipated because the incongruity effect is expected to be compensated partially by the overlap between product brand image and retailer brand image in case of store brands. Table 4 below provides an overview over the effects of store image and product brand image. The subsequent table illustrates the basic logic of incongruity effects:
Table 4: The Effects of Store Image and Product Image Retailer Brand
Image
Product Brand Image
Consequence
Situation 1 Low Low
(Private)
Congruity
Situation 2 High High (National) Congruity
Situation 3 Low High (National) High Incongruity
72
Table 5: Basic Logic: PBI and RBI in Terms of Congruity
PBI RBI
Low High
Private
(Low Image) High
Moderate (= Incongruity) National (High Image) Low (= Incongruity) High
Transferring these findings to the dog food setting would mean, Dollar General could (at least to some degree) improve its image by offering high image products, whereas Petsmart might harm its image by offering low image product brands.
To be considered in the development of this research was the impact of low versus high product involvement upon the aforementioned constellations.
Product involvement represents the degree of effort consumers are inclined to exert in interpreting a message related to a product and / or brand (Peter and Olson 2009). For example, the literature generally relates the habitual purchase of grocery products to low involvement decision-making (Beharrell and Denison 1995). During routine purchase decision-making consumers are less invested in interpreting brand signals that depart from fit or typicality.
Pet food purchases are generally considered high involvement product decisions. As the consumer’s interest in the product / brand increases, s/he is more motivated to process relevant information, i.e. there is higher elaboration likelihood (elaboration likelihood model; MacInnis and Jaworski 1989). It can be concluded that misaligned brand quality signals received in this mental state are perceived as stronger interferences. Hence, incongruity is expected to be particularly prominent in high involvement situations.
For the sake of parsimony, this research focuses only upon high involvement products in anticipation of stronger incongruity effects. The subsequent hypotheses employ the suggested
73
term congruity in substitution of perceived congruity. Hypotheses can be phrased in terms of incongruity or congruity. In order to enhance clarity all hypotheses are formulated in relation to congruity.